The outlook is mixed, with inorganic growth offsetting organic weakness. We expect negative reversions to persist for at least two more quarters, thus dragging organic growth. First full quarter contribution from the US data centres was in 4Q FY18, so the current quarter (3Q FY19) will be the final quarter where there will be material YoY uplift. 30A Kallang Place and Mapletree Sunview 1 would continue to contribute positively to distributable income YoY growth. The proposed acquisition of 18 Tai Seng Street and upgrading of 7 Tai Seng Drive are expected to contribute positively in 2019 as well.
Downgrade to Neutral; unchanged target price of $2.03
Our rating downgrade is due to the limited upside from the current price to our target price (implied 1.36 times FY19 P/NAV multiple), and not because of a change in fundamentals.
MINT is trading above the peer average P/NAV multiple and at a tighter 12M-trailing yield than the peer average.